Salzgitter shares rise on Bank of America 'Buy' rating

Salzgitter AG shares rose following a new 'Buy' rating from Bank of America (BofA). The US bank set a price target of 71 euros for the steel manufacturer.

Analyst Reinhardt van der Walt identified an 18 percent upside potential for the company's 2027 EBITDA consensus, citing EU trade protection measures as a favorable factor. The analyst also noted that the acquisition of Hüttenwerke Krupp Mannesmann (HKM) expands Salzgitter's capacity in a tightening market, with manageable implementation risks.

Furthermore, the postponement of certain phases of the Salcos project—a transformation program for CO2-free steel production—is expected to allow for faster debt reduction and an improved free cash flow profile in the coming years.